China Expert

By Ron Cune

Many Western Managers have difficulties with the low pro-activity level of their Chinese co-workers. The ‘lack of initiative’ frustrates them. This passive attitude is not related to motivation, it roots in the Chinese educational system.

Western education is focused on values like independence and creativity. Exchanging ideas and discussing advantages and disadvantages of certain solutions are important parts of our education system(s). Taking initiative and asking questions are encouraged.

The Chinese educational system is based on centuries-old traditions which still have an impact on today’s society. Facts are more important than questions. Questioning facts is seen as questioning the masters’ knowledge. A discussion of any sort between pupil and teacher is not-done. 
The level of perfectionism is measured by the accurateness of ‘imitating’ the master.
Read the rest of “Personal Coach or Chief in Command?” or post a comment

What Can and Can’t Be Asked?

By Matthew Harrison, Director of B2B International China

The subject of what can and cannot be researched in China is a contentious one, and – as with data collection methods – there is a tendency for the ‘uniqueness’ of China to be exaggerated in this respect.

In terms of subject matter, the truth is that there is very little difference between what can be researched in China and what can be researched in Western countries. Culturally, there is no great reticence in terms of providing information, and as the Chinese become increasingly aware of market research, obtaining their views is, if anything, becoming easier.

Most of the areas in which it is difficult to obtain information are similar to those that are difficult in the West. Company’s financial data, such as profit and loss information, is an obvious example, and this can be as much to do with lack of knowledge as lack of willing on the part of the respondent. It is true that certain Read the rest of “Business to Business Market Research in China – Part III” or post a comment

By Hayden Hong

Every day, more organizations are eagerly embracing the concept of offshore outsourcing to lower costs, increase efficiency and productivity, and enable employees to focus on the innovative, core endeavors that drive business forward.

IT departments have been early adaptors of outsourcing projects and services. Now manufacturers, original equipment manufacturers (OEM), original design manufacturers (ODM), independent software vendors (ISV), system integrators (SI), and value-added resellers (VAR) whose products rely on embedded software and hardware across countless industries are exploring the benefits of offshore outsourcing to stretch their R&D dollars.
Read the rest of “The Hidden Costs of Outsourcing: Beware and Be Wise” or post a comment

By Ron Cune

One of the most widely discussed subjects about doing business with Chinese people is the concept ‘Guanxi’. Literally ‘Guanxi’ means “being closed into a system”.

Not without reason, the term Guanxi often isn’t translated into English. In some occasions Guanxi is translated as ‘networking’, but that doesn’t really get to the deeper meaning of the word. While networking is based on knowing which person does what, Guanxi is based on the right to ask for a favour. Furthermore, Guanxi relates to someone’s background, work relations, family matters and relations that have nothing to do with friendship. Being aware a favour from the other party can be asked for, is the essence of Guanxi. Read the rest of “It’s not only friendship that creates Guanxi” or post a comment

By Maarten Roos

An important difference in business practices between China and many western countries is the value that courts and officials give to the stamp (in China often referred to as the “chop” or seal). We introduce the rules and practice, and some suggestions on how to manage your risk.

For many western companies, the signature of its legal representative is the ultimate mark of authority. Not so in China. Since a representative’s signature is rarely registered, the value of the company stamp is far greater. Every company in China, after it is established, will make and register its company stamp with the local authorities (in this case the Public Security Bureau). Towards third parties, this company stamp represents the company, therefore documents bearing this stamp will generally be legal and binding upon that company – whether that document bears a signature or not! Read the rest of “Chinese Chops – the Ultimate Business Tool” or post a comment